Accounting entries for purchasing wealth management products
At the time of purchase:
Borrow: transactional financial assets
Loans: bank deposits
Upon redemption at maturity:
Positive income:
Debit: bank deposit
Loan: investment income
Transactional financial assets
Negative income:
Debit: bank deposit
yield
Loans: transactional financial assets
What are transactional financial assets?
Transactional financial assets refer to debt securities and equity securities that enterprises intend to make profits through active management and trading. Enterprises usually buy and sell such securities frequently in order to gain profits from short-term price changes.
"Trading financial assets" accounts for the fair value of trading financial assets such as bond investment, stock investment and fund investment held by enterprises for trading purposes. Financial assets directly designated by the enterprise and measured at fair value and whose changes are included in the current profit and loss are also accounted for in the subject of "transactional financial assets". The acquisition cost of registered trading financial assets is debited from the "trading financial assets" account, and its fair value is higher than the book balance on the balance sheet date; The difference between the lender's fair value and the book balance on the balance sheet date, and the cost carried forward when the enterprise sells the trading financial assets.
What is a bank deposit?
Bank deposit is the currency deposited in the bank, and it is an integral part of monetary funds. According to the provisions of China's cash management system, every enterprise must open a deposit account with the People's Bank of China or a specialized bank for deposit, withdrawal and transfer settlement. Except for a small amount of cash within the prescribed limit, the monetary funds of the enterprise must be deposited in the bank. Bank deposits of enterprises mainly include: settlement account deposits, letter of credit deposits, foreign deposits, etc. Every bank deposit income and expenditure business must prepare accounting vouchers according to the audited original vouchers. In accounting, bank deposits belong to the asset class, and the ending balance is in the debit. In accounting entries, debit means increase and credit means decrease.